Are mutual funds included in the marital estate when splitting up retirement funds in a New York divorce?
Are mutual funds included in the marital estate when splitting up retirement funds in a New York divorce?
If the mutual funds are part of a spouse's retirement plan, as might be the case (for example) with an IRA, then they are subject to division in the same manner as any other retirement account.
If the mutual funds are a separate investment, and were acquired during the marriage with marital assets, then they are a marital asset subject to division. If they were owned solely by one spouse before the marriage, or purchased in a single spouse's name with the spouse's separate assets (e.g., a gift or inheritance), then they would generally be treated as separate assets, but even with separate assets principles of equitable distribution can come into play, and it is also possible for appreciation or post-marriage investments to be treated as marital property, or that the post-marriage facts might cause a court to deem the account to have merged into the marital estate.
The spouses should discuss the details with their divorce lawyers.